On October 16, Cornerstone Capital Bancorp Inc., the holding company for Houston-based Cornerstone Capital Bank, and Peoples Bancorp Inc., the holding company for Lubbock-based Peoples Bank, announced the signing of a definitive agreement under which Cornerstone will acquire Peoples. This transaction marks Cornerstone’s first bank acquisition since its merger with Roscoe Bank in 2022. Upon completion, Peoples Bank will operate within Cornerstone’s new community banking division as Peoples Bank, a Division of Cornerstone Capital Bank. The merger’s closing is expected in the first quarter of 2026.
The combined institution will have approximately $3.1 billion in assets, expanded presence in Texas markets, improved statewide deposit market share, enhanced power for Cornerstone’s mortgage and servicing divisions and more. Leadership appointments following the merger will include:
- Larry Allen, chairman and CEO of Peoples, joining the boards of Cornerstone Capital Bancorp and Cornerstone Capital Bank, and serving as area chairman/Peoples Bank;
- Todd McKee, area vice chairman, Peoples Bank;
- Tim Farris, area president, Peoples Bank;
- Jon Drake, senior executive vice president of the combined bank; and
- William Booe, executive vice president of the combined bank.
All branch presidents of Peoples Bank will continue in their current roles. Allen will also chair Cornerstone’s new Peoples Bank regional advisory board, which will include Ronnie Bilbo, Brett Cate, Charles Darter CPA, Walt Hagood and Steve Nieman.
“With one of the strongest capital positions in our markets and a deep base of low-cost core funding, we are well positioned for meaningful organic growth,” says Scott Almy, president and CEO of Cornerstone. “By uniting Peoples’ loyal customer base and strong local presence with Cornerstone’s national resources, we are building an organization that will deliver lasting value to our team members, communities, and shareholders.”
“With Cornerstone’s scale and resources, we will be able to bring new products, tools and lending capacity to our customers, while keeping the personal approach that defines Peoples,” Allen notes. “Our team remains in place, our local commitment remains firm and we now have an even stronger platform for growth.”
Cornerstone was advised by Piper Sandler & Co. as financial advisor and Otteson Shapiro LLP as legal counsel. Peoples was advised by Hillworth Bank Partners as financial advisor and Fenimore Kay Harrison LLP as legal counsel.
Established in 2022 through the merger of Cornerstone Home Lending and Roscoe Bank (with roots going back to 1906), Cornerstone Capital Bank operates four full-service banking locations in Houston, Bastrop, Sweetwater and Roscoe, along with commercial and mortgage loan production offices in major Texas metropolitan areas and mortgage production offices nationwide.
Established in 1968, Peoples Bank has 13 locations across West Texas and the Dallas/Fort Worth metroplex, including branches in Lorenzo, Lubbock, Nazareth, Post, Princeton, Seminole, Seymour, Shallowater, Slaton and Whitney, with a loan production office in Frisco.
